* TSX rises 105.37 points, or 0.78 percent, to 13,687.66
* All of 10 main index sectors advance
* First Quantum up after raising Cobre Panama output outlook
* Air Canada slides on concerns about weaker loonie
By John Tilak
TORONTO, Jan 28 Canada's main stock index
recovered on Tuesday, snapping a three-day losing streak, as
investors eyed a Federal Reserve meeting for signs of a further
scaling-back of the U.S. central bank's monetary stimulus.
Fears about China's economic growth outlook and another
possible move by the Fed to trim its bond-buying program have
weighed on investor sentiment since last week. Further, recent
sharp drops in emerging market currencies, such as the Argentine
peso and Turkish lira, threw global markets into disarray.
Global markets remained jittery ahead of any signal from the
Fed as well as a decision by Turkey's central bank as to whether
to raise interest rates in an attempt to stabilize the currency.
After a solid rebound in the second half of 2013 and a
promising start to the current year, the Toronto index recorded
two of its biggest single-day drops in recent months in the
previous two sessions.
Despite Tuesday's gains, some market analysts were cautious.
"We may get a bounce today, but overall the market is on a
downward trend," said Marcus Xu, portfolio manager at MY Capital
Management Corp in Vancouver. "The biggest risk is the emerging
"Everybody wants to be safe and nobody wants to stick their
neck out," he added. Investors "want to be away from risky
assets just for the time being."
Xu, who says that this year will be a lot more volatile than
2013, expects the TSX to outperform the S&P 500 index.
The Toronto Stock Exchange's S&P/TSX composite index
closed up 105.37 points, or 0.78 percent, at
All of the 10 main sectors on the index were higher.
Financials, the index's most heavily weighted sector, gained
0.5 percent, with Manulife Financial Corp adding 1.5
percent to C$20.87.
Shares of energy companies rose 1.1 percent, helped by
higher oil prices. Canadian Natural Resources Ltd
advanced 2.6 percent to C$36.30 and was the most influential
gainer on the index.
The materials sector, which includes mining stocks, added
1.9 percent. Barrick Gold Corp climbed 1.7 percent to
C$20.96, and Teck Resources Ltd advanced 3.2 percent
In corporate news, First Quantum Minerals Ltd said
its Cobre Panama project in Central America should produce about
20 percent more copper than previously planned, but initial
production will be delayed and development costs will be higher.
The stock rose 2.6 percent to C$20.36.
Air Canada shares tumbled 12.3 percent, to C$7.63,
as investors worried that Canada's weakening dollar would drive
up costs at the country's largest airline.